Moneymakers: Don Vardeman

Work brings its own reward

Published 6:30 am, Wednesday, January 11, 2006

Managing massive and complex offshore oil and natural gas exploration construction projects brings its own mix of challenges and rewards.

But Don Vardeman, Kerr-McGee's head of facility engineering, never expected recognition from the president of Finland as a reward for his efforts.

Vardeman was recently presented with the Insignia of the Commander of the Order of the Lion of Finland for his meritorious services for that country's maritime industry. Finland's former U.S. ambassador, Jukka Valtasaari, presented the award to Vardeman in a ceremony in Houston recently, recognizing all the work Kerr-McGee has brought to a shipyard in Pori, Finland, now operated by Technip.

A: In 1995 we started with the placement of contract work for the first production spar, Neptune. This was for a spar hull with about 12,000 tons of steel. Since then a total of 10 spars have been built there, with five of those spars going to Kerr-McGee, consuming some 140,000 to 150,000 tons of steel.

Q: But why was this work so important to the country that they would present such an award?

A: When we placed our first order in 1995, it was when Russia was still breaking up and the Finnish economy was still tied to the old Soviet Union. The shipyard at Pori really didn't have any work and had something like 14 percent unemployment in the area. We came along with Neptune and then two more. The work went quiet for a couple of years, but in 2001 we came along with the Nansen project, so most of these people were just waiting for more work.

Q: Why do you keep going back to Finland?

A: The thing we've really enjoyed is their tremendous work ethic and the quality of the work they provide. They have a dedication and ability to maintain schedule, a good knack for figuring out how many hours it takes to put steel together. We bring together the many parts they make here in the Gulf of Mexico and install them far out at sea, so it helps us to know this high-quality hull is being delivered to us. I've made 16 trips to Finland over the last 10 years and have really grown to love the people.

Q: Why is the spar design so significant?

A: Spars represented a real step change for the industry, which needed an economical way to produce smaller fields that weren't going to produce more than 75 million barrels. You could use subsea tie-backs to bring production from the wells to platforms, but in the case of our Neptune field, since we had a lot of paraffin in the well, we needed something over it to scrape the paraffin away. Spars let us do that. Subsequently, the industry has taken spars to work in depths in excess of 5,000 feet and put them on larger fields. Spars have been a good tool to have in the tool kit. It doesn't have the vertical heave you get with other designs, and they get back on production fairly quickly after storms.

Q: Have you been coached on proper etiquette for wearing your Order of the Lion award?

A: The notification of the award came out of the blue, so I got some help on the proper attire to wear and protocol to follow when meeting the ambassador. Along with the award came an instruction guideline that stated the appropriate times where I can wear it. The company Christmas party was not on the list.